ACR payment date for Dalny Mine further extended

HARARE - AIM-listed miner African Consolidated Resources (ACR) has agreed with Falcon Gold Zimbabwe Limited (Falgold) to further extend the date for payment of the outstanding amount for the purchase of Dalny Mine and associated infrastructure to October.

Following Falgold shareholders’ approval of the $7,5 million acquisition deal earlier this month, ACR and Falgold agreed to extend the date of payment of the outstanding consideration yesterday.

ACR said, in view of the extension, it has agreed to “make a contribution to Falgold’s care and maintenance costs on the Dalny Mine on a stepped basis ranging from a $250 000 contribution if payment is made by October 3, 2014 to $1 million if payment is made by October 31.

Any contribution will be taken from the $1 million payment on account of the consideration due for the purchase of the Dalny Mine that has already been made by the Company.

Before the acquisition, Dalny was facing operational challenges including rising labour and power costs, high domestic royalties, taxes and fees, as well as a damaging and costly illegal strike by workers last year.

Falgold’s plan to dispose of Dalny had been on the cards since last year, when the Kadoma mine was mothballed due to operational challenges.

“The estimated net cash from the transaction is approximately $2,5 million,” Falgold said.

In accordance with the terms of the disposal, ACR will settle in full Dalny’s all-known trade creditors and payment of salary arrears.

ACR will also settle any capital gains tax or other liabilities due to the Zimbabwe Revenue Authority (Zimra) and the balance of funds after the payments will be remitted to Falgold.

Following the initial payment extension, ACR said it remains in discussions with investors concerning the funding of approximately $18 million, needed to acquire Dalny Mine and to operationalise its Pickstone Peerless Gold project in Zimbabwe and fast track production.

ACR is a junior resource development company focused on Zimbabwe, Zambia and Mozambique with projects covering gold, nickel, platinum, copper, phosphate and diamonds.

Comments (3)

Iwe Arthur Chatora unobvepi

Chief Charumbira - 23 August 2014

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